"The Investment Advisers
Act of 1940 is the key piece of legislation that impacts investment advisers
," said Terrance OMalley.
"The releases reiterate the Commission's views on the importance of investment advisers
' voting responsibly on behalf of their clients and the applicability of our proxy rules to proxy voting advice.
The Commission has issued guidance to assist investment advisers
in fulfilling their proxy voting responsibilities, particularly where they use the services of a proxy advisory firm, and provides guidance on proxy voting disclosures under Form N-1A, Form N-2, Form N-3, and Form N-CSR under the Investment Company Act of 1940.0x20 The Commission has also issued an interpretation of Exchange Act Rule 14a-1(l) that proxy voting advice generally constitutes a solicitation under the federal proxy rules and related guidance regarding the application of the antifraud provisions in Exchange Act Rule 14a-9 to proxy voting advice.
Another challenge for the investor is that investment advisers
are not required to identify themselves as such and may use some other description.
In addition to creating a public disclosure void, the lack of an investment adviser
representative registration regime also creates a unique registration obligation for "mid-sized" advisory firms in New York that have between $25 million and $100 million in regulatory assets under management.
("VIOCO"), which provided consulting services to registered investment advisers
and broker-dealers in the field of regulatory compliance, including compliance policy planning and implementation of soft dollar reviews, mock SEC compliance audits, and compliance training for supervisory personnel.
Carolyn McCarthy (D-N.Y.) are co-authors of the Investment Adviser
Oversight Act of 2012.
"The problems that exist with the SEC's oversight of federally registered investment advisers
have been characterized as a "regulatory gap," Morgan said.
The other set of rules defines "family offices" that are to be excluded from the Investment Advisers
Among the recommendations in its "Study on Enhancing Investment Adviser
Examinations," the SEC is seeking to impose user fees on SEC-registered investment advisers
to fund their exams by the Office of Compliance Inspections and Examinations.
Most investment advisers
previously relied on the "Private Investment Adviser
Exemption" under the investment Advisers
Act in determining whether or not they had to register with the SEC (based on whether or not they advise less than 15 clients).
They also are not subject to the same up-front disclosures as investment advisers